Jackson, TN – Cardiologist Dr. Elie H. Korban will pay $1.15 million to resolve False Claims
Act allegations that he billed Medicare and Medicaid for medically unnecessary cardiac stent
placements, the Justice Department announced today. Korban owns Delta Clinic, with offices in
Jackson, Tenn., and Lexington, Tenn., and has privileges at Jackson-Madison County General
Hospital and Regional Hospital of Jackson, both in Jackson, Tenn.
“Billing Medicare for cardiac procedures that are not necessary or appropriate contributes to the
soaring costs of health care and can harm patients,” said Assistant Attorney General for the
Justice Department’s Civil Division Stuart F. Delery. “Protecting public funds and safeguarding
Medicare beneficiaries continues to be a Department of Justice priority.”
Cardiac stents are mesh tubes placed in coronary arteries of patients to keep their arteries open
during the treatment of coronary heart disease. The government contends that, from January 1,
2005, through December 31, 2008, Korban placed cardiac stents in Medicare and Medicaid
patients when the stents were not medically necessary. The government also claims that Korban
improperly billed Medicare for work performed by substitute doctors when he was available to
perform the services himself.
“This case is one of many that underscores our commitment to holding accountable those who
would cheat the health care system for their own personal profit,” said U.S. Attorney for the
Western District of Tennessee Edward L. Stanton III. “We will continue to vigorously protect
citizens from schemes that damage the ability of health care providers and patients to participate
in a system free of false claims and dishonesty.”
As part of the settlement, Korban entered into an Integrity Agreement with the Department of
Health and Human Services Office of Inspector General intended to deter wrongful conduct in
the future. The agreement requires enhanced accountability and monitoring activities to be
conducted by both internal and independent external reviewers.
“Too many recent frauds involve medically unnecessary heart stents,” said Derrick L. Jackson,
Special Agent in Charge at the U.S. Department of Health and Human Services Office of
Inspector General region including Tennessee. “Providers are warned that they can be
aggressively investigated and held accountable for falsely billing federal health programs.”
The allegations resolved by the settlement were first raised in a lawsuit filed against Korban
under the qui tam, or whistleblower, provisions of the False Claims Act. The Act allows private
citizens with knowledge of fraud to bring civil actions on behalf of the government and to share
in any recovery. As part of the settlement, the whistleblower, Dr. Wood M. Deming, will receive
a share of the settlement amount. Deming’s share has not been determined.
The case is captioned United States ex rel. Wood M. Deming v. Jackson-Madison County
General Hosp., et al., Case No. 07-1116-BBD (W.D. Tenn.). The claims settled by this
agreement are allegations only, and there has been no determination of liability.
